Officials said on Thursday that Singapore’s strong rebound from its worst-ever recession last year will be helped by a broad-based recovery in the United States and buoyant growth in large Asian economies such as China.
Gross domestic product grew 38.6 per cent from the fourth quarter on a seasonally adjusted and annualised basis. By comparison, the city-state’s economy shrunk by 1.3 per cent last year.
The government expects growth to reach 7-9 per cent this year. Optimism is widespread, despite the risks associated with the debt troubles in Europe.
Confidence is also due to positive trends in the region’s main economies. For example, Japan’s economy grew 1.2 per cent in the first quarter, boosted by stimulus-driven consumption and solid exports to Asia.
On the down side, housing prices jumped 5.6 per cent in the first quarter of the year, despite government policies meant to keep a lid on the real estate market.
The government is particularly concerned about a real estate bubble and has introduced new administrative and tax rules to hold the market in check.